2027 Tax Planning & EOFY Checklist for Australian Businesses and Individuals

The end of the financial year can arrive quickly. If you wait until after 30 June 2027 to consider your tax position, some legitimate planning opportunities may already have passed. A timely review can help you understand your expected tax outcome, organise the right records and make informed decisions before the financial year closes.

This practical 2027 tax planning checklist is designed for Australian individuals, sole traders, investors and business owners. It explains what to review, which documents to prepare and when professional advice may be valuable. Tax planning is not about artificial arrangements or last-minute spending. It is about making lawful, commercially sensible decisions based on your circumstances and the rules that apply at the time.

What Is EOFY Tax Planning?

EOFY tax planning is a forward-looking review completed before 30 June. It considers your income, deductible expenses, investments, superannuation, business performance and upcoming transactions so you can understand their likely tax consequences before the year ends.

This is different from tax return preparation. A tax return mainly reports what has already happened. Tax planning gives you time to consider what may still be done lawfully before a relevant deadline. The right strategy will depend on factors such as your entity structure, accounting method, taxable income, cash flow, investments and longer-term goals.

When Should You Start Planning for 30 June 2027?

For many taxpayers, March to May is a useful period for a detailed review. Businesses with more complex structures, trusts, significant asset purchases or proposed transactions may benefit from starting earlier. Leaving the review until the final days of June can create practical problems because documents, valuations, finance approvals and superannuation payments may take time to process.

A sensible timeline is:

July to December 2026: keep records current, review prior-year outcomes and flag major transactions early.

January to March 2027: update forecasts and identify changes in income, investments, staffing, financing or business structure.

April to May 2027: meet with your accountant, estimate the likely tax position and agree on any appropriate actions.

June 2027: complete approved actions, confirm payment cut-off dates and retain supporting documents.

After 30 June 2027: reconcile records and prepare accurate information for your tax return or business accounts.

2027 EOFY Checklist for Individuals and Families

1. Review all sources of income

Prepare a complete picture of salary and wages, allowances, interest, dividends, distributions, rental income, foreign income, government payments, capital gains and income from any side business or digital platform. Missing income can delay preparation or lead to amendments later.

2. Organise work-related expense records

Review expenses that directly relate to earning your income and confirm that you have the evidence required to support any claim. A bank or credit-card entry alone may not always explain the nature of an expense. Keep receipts, invoices, logbooks, diaries and calculations where relevant, and apportion expenses that have both private and work-related use.

3. Check working-from-home records

If you worked from home, confirm which calculation method is appropriate and whether your records meet the current ATO requirements. Do not claim the same cost twice under different methods. Keep evidence of hours worked from home as well as any separately claimed eligible expenses.

4. Review donations and tax-deductible gifts

Gather receipts for gifts or donations made to deductible gift recipients. Not every fundraising payment, raffle ticket, membership or crowdfunding contribution is deductible, particularly where you received a material benefit in return.

5. Consider personal superannuation contributions early

Depending on your circumstances, personal deductible super contributions may form part of your planning. Contribution caps, eligibility rules, timing, fund processing and notice requirements matter. From 1 July 2026, the ATO states that the general concessional contributions cap is $32,500, but your available cap may differ and excess contributions can have tax consequences. Obtain advice before contributing, and allow enough time for the fund to receive the payment before 30 June.

6. Review investments and potential capital gains

Before selling shares, cryptocurrency, managed funds or other assets, understand the possible capital gains tax consequences. Capital losses may generally offset capital gains but cannot simply be deducted against salary or other ordinary income. Decisions should be driven by your investment objectives, not tax alone, and deliberate loss-making arrangements may attract scrutiny.

7. Prepare rental-property information

Collect rental statements, loan interest details, council rates, insurance, agent fees, repair invoices and depreciation information. Separate repairs from improvements because their tax treatment may differ. Also identify periods of private use, below-market rent or vacancy, as these can affect deductions.

8. Flag major life and financial changes

Tell your accountant about events such as marriage or separation, a new dependant, redundancy, an inheritance, moving overseas, returning to Australia, buying or selling property, commencing a side business or changing employment arrangements. These changes may affect your tax position or the information required.

2027 EOFY Checklist for Sole Traders and Businesses

1. Bring bookkeeping and reconciliations up to date

Reconcile bank accounts, credit cards, loans, payroll, GST accounts and accounting software. Investigate unreconciled items and confirm that private transactions have not been treated as business expenses. Reliable accounts are the foundation of useful tax planning.

2. Prepare a year-end profit and tax forecast

Compare year-to-date results with the previous year and forecast income and expenses through 30 June. Include expected invoices, contract revenue, stock movements, payroll, finance costs and unusual transactions. A forecast can help estimate tax obligations and highlight cash-flow pressure before payment dates arrive.

3. Review income and expense timing

The timing of income and deductions depends on the applicable tax rules and your accounting method. Do not delay issuing invoices or accelerate spending solely to manufacture a tax result. Ask your accountant whether legitimately incurred expenses, prepaid expenses or income received around year-end are treated in the current or following financial year.

4. Review depreciating assets and proposed purchases

Before buying equipment, vehicles or technology, consider commercial need, cash flow, finance costs, private use and the depreciation rules that apply. A purchase does not necessarily produce an immediate deduction for its full cost. Temporary write-off measures and eligibility thresholds can change, so confirm the law in force before committing funds.

5. Complete a stocktake where required

Businesses that hold trading stock should plan for an accurate year-end stocktake and retain records showing how stock was counted and valued. Identify obsolete, damaged or slow-moving items and discuss the permitted valuation methods with your accountant rather than applying an arbitrary write-down.

6. Review bad debts carefully

Identify debts that are genuinely unrecoverable and document the recovery steps taken. A doubtful debt is not automatically a deductible bad debt. The timing and eligibility conditions should be checked before an amount is written off in the accounts.

7. Check employee and contractor obligations

Review payroll records, PAYG withholding, super guarantee, Single Touch Payroll reporting and contractor arrangements. Ensure employee super contributions are paid on time and remember that the timing of payment can affect deductibility. Contractor labels do not override the substance of the working relationship.

8. Review motor vehicle and travel claims

Confirm that logbooks, odometer readings, travel diaries and supporting receipts are complete where required. Separate private travel from business travel, and do not assume that every trip between home and work is deductible.

9. Check loans, drawings and private-company transactions

Private companies and trusts should review shareholder, beneficiary and associate transactions before year-end. Payments, loans, debt forgiveness, unpaid entitlements and private use of company assets can trigger complex tax rules, including Division 7A. These matters should be reviewed with an accountant before documents or repayments are due.

10. Review trust distributions before 30 June

Trustees should obtain advice early and prepare valid distribution resolutions within the required timeframe under the trust deed and tax law. Consider beneficiary circumstances, trust income definitions, capital gains, franked distributions and any unpaid entitlements. Template resolutions should not be used without checking the trust deed and current facts.

11. Reassess business structure and future plans

Tax planning is also an opportunity to ask whether your existing sole trader, partnership, company or trust structure still suits the business. Growth, new owners, asset-protection needs, succession plans and a possible sale can change the answer. A restructure can have income tax, CGT, GST, duty, legal and financing consequences, so obtain advice before transferring assets or contracts.

12. Plan for upcoming tax payments and cash flow

Estimate income tax, GST, PAYG instalments, payroll obligations and super payments. Set aside funds and update cash-flow forecasts. Tax planning should improve visibility as well as consider deductions; spending one dollar merely to reduce taxable income will usually leave the business with less cash overall.

Documents to Give Your Accountant

• Providing complete information early makes the planning meeting more productive. Depending on your circumstances, prepare:
• Up-to-date bookkeeping reports, bank reconciliations and trial balance
• Year-to-date profit and loss statement and balance sheet
• Expected income and expenses through 30 June 2027
• Payroll, PAYG withholding and superannuation records
• Asset purchases, disposals, finance agreements and depreciation schedules
• Stocktake records and details of obsolete or damaged stock
• Loan accounts, director or shareholder transactions and trust distributions
• Investment, dividend, managed-fund and cryptocurrency records
• Property purchase, sale, rental and loan documents
• Receipts and calculations for deductions not already recorded
• Details of proposed purchases, sales, restructures or other major decisions

Questions to Ask During a Tax Planning Meeting

• What is my estimated taxable income and likely tax payable for the year ending 30 June 2027?
• Are my records complete, and what evidence is still missing?
• Are there legitimate actions I should consider before 30 June?
• How will any proposed asset purchase, property sale or investment decision affect my tax and cash flow?
• Are my superannuation contributions within the applicable caps and received on time?
• Do company loans, trust distributions or related-party transactions need attention?
• Should I review my PAYG instalments or set aside additional funds for tax?
• Does my current business structure still support my commercial and longer-term goals?

Common EOFY Tax Planning Mistakes

• Waiting until the final week of June, when there may not be enough time to obtain advice or complete transactions.
• Spending money only to obtain a deduction, without considering commercial value or cash flow.
• Assuming every payment made before 30 June is immediately deductible.
• Making a super contribution without checking caps, eligibility, notice requirements or fund processing times.
• Claiming private expenses or failing to apportion mixed-use expenses.
• Selling an investment for tax reasons without considering the wider financial consequences.
• Using generic trust resolutions or related-party loan documents without advice.
• Relying on last year’s thresholds, concessions or online checklists without confirming current rules.

Why Personalised Tax Planning Matters

Two people with similar income can have very different tax outcomes because their structures, investments, deductions, family circumstances and future plans differ. The same is true for businesses. An appropriate strategy for a sole trader may be unsuitable for a company, trust, property investor or high-income employee.

Professional tax planning can help you interpret the rules in the context of your actual figures, identify compliance risks and model the cash-flow impact of different choices. It should also consider the commercial purpose of a decision—not simply whether a deduction might be available.

Plan Before 30 June 2027

A useful tax-planning review begins with accurate records and enough time to act. If you are an individual, investor, sole trader or business owner in Melbourne, Rick & Mon Accountants can help you review your expected position and prepare for EOFY with advice tailored to your circumstances.

Learn more about our tax planning services in Melbourne or contact our team to arrange a planning discussion before 30 June 2027.